Patanjali distributors have now come under the scanner of the National Anti-profiteering Authority (NAA) for allegedly not reducing prices in line with cuts in goods and services tax (GST), The Economic Times reported, citing people familiar with the matter.

The development comes after the authority penalised Patanjali for not passing the benefits of tax cuts to customers.

According to the report, the sources said that the NAA is now investigating whether the distributors had pocketed the benefits gained by the tax cuts. The NAA has issued notices to about ten of Patanjali’s biggest distributors over the past month for not reducing prices, the report added.

“The (distributor) was legally bound to pass on the benefit of reduction in the GST rate to customers which he has not as it is apparent from the invoices,” stated one of the notices reviewed by ET.

Hindustan Unilever, Procter & Gamble, Johnson & Johnson and Hardcastle Restaurants, a franchise of fast food chain McDonald’s have also been penalised due to the same reason, the report mentioned.